OmniAb, Inc.

Good afternoon, ladies and gentlemen, and welcome to the OmniAb Inc. fourth quarter and full year of 22 earnings conference call. At this time, online analysis is in only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, March 30, 2023. And I would now like to turn the conference over to Kurt Gustafson. Please go ahead.

Thank you, Operator, and good afternoon. This is Kurt Gustafson, OmniAd's Chief Financial Officer. Thank you all for joining OmniAd's fourth quarter 2022 financial results conference call. I'd like to remind listeners that there are slides to accompany today's remarks. Those slides are available in the Investors section of our website at OmniAd.com. Before we begin, I'd like to remind listeners that comments made during this call will include forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. These forward-looking statements are qualified by the cautionary statements contained in today's press release and our SEC filings. Importantly, this conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, say March 30th, 2023. Except as required by law, OmniAB undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Joining me on the call today is Matt Foer, President and CEO. During today's call, Matt and I will provide highlights on the company's operations, partner in technology updates, and our recent financial results. At the conclusion of the prepared remarks, we'll open the call to questions. So with that, let me turn the call over to Matt. Matt?

Thanks, Kurt. Good afternoon, everyone, and thanks for joining this, our first Financial Results and Business Highlights conference call. Since 2016, OmniApp has grown and evolved through multiple strategic acquisitions and organic technology investment initiatives, to become a leader in the integrated antibody discovery space. In November of last year, we completed our spinoff from Ligand Pharmaceuticals, resulting in OmniApp becoming an independent, publicly traded company. With that transaction closed, I'm confident we're well positioned with our current corporate structure, our operational focus, and our deep domain expertise to now capitalize on the growth opportunities that are ahead of us, and in doing so, make an enduring impact on global human health. That promise of impacting human health energizes our team of just over 100 employees and positions us very well for the future. OmniAB's highly scalable business model of licensing our discovery platform globally enables our partners to rapidly develop innovative therapeutics. Our partners value that we continue to push the frontiers of enabling technologies. We believe we're the industry's only four species antibody discovery platform, making OmniAB the most diverse host system for fully human and bispecific antibody discovery. With our proven platform technology, the number of partners with access to OmniAB antibodies has grown significantly to a total of 69 with 291 active programs, now including three product approvals. I'll get to further details on our performance metrics on the next slide, but another point I'd like to make here is that we're participating in a large and growing market. with global sales of antibody pharmaceutical products projected to reach approximately $279 billion in 2025, up from about $180 billion in recent years. Some of the best-selling drugs today are antibody-based medicines, and these are just some of the factors that drive the industry's demand for cutting-edge discovery technology. Our technology platform continues to prove its value to partners. Our teams made great strides in growing our portfolio with the addition of 13 new partnerships in 2022, including an expansion deal with an existing partner. We added more new partners in 2022 than in any other year of the technology's history, which we feel positions the business for future growth. As I mentioned, we have 291 programs currently being developed or commercialized by our partners. We recognized royalty revenue from initial commercial sales of both Zimbarilumab and Sugamalumab in China. And it's also important to note that the numbers in the graphs on these slides are net of attrition. Our platform continues to generate new clinical programs, and we now have rat-derived, mouse-derived, and chicken-derived antibodies that have entered human clinical trials. By year end, our platform had generated a cumulative total of 28 clinical or approved antibodies, including three new programs that entered the clinic during the second half of 2022. Each of these programs has a different modality, which further demonstrates the flexibility of our technology. The three new programs include Merck's antibody drug conjugate, anti-CCAM5 in advanced solid tumors, GenMab and BioNTech's hexabody anti-CD27 in malignant solid tumors, and Janssen's tri-specific antibody in relapsed or refractory multiple myeloma. There were two programs that came out of clinical development in 2022 as two of our partners realigned the therapeutic area focus of their pipelines. That said, the clinical attrition rate of OmniAb antibodies remains very low. There are now more than 140 different clinical trials underway or completed by our partners. More than 27,000 subjects are to be or have been enrolled in clinical trials that are testing OmniAb-derived antibodies. This is a representation of the significant investments that our partners are making in downstream development of antibodies discovered using our technologies. Based on dialogue with partners, we see potential for approximately three to five new entries into clinical development for novel OmniAb-derived antibodies in 2023. with programs addressing major unmet medical needs. On slide seven, we break out our 291 programs by stages of development. You can see there's a large and growing base in the discovery stage, totaling 251 programs, and now 14 programs in preclinical. In the clinic, our partners have programs totaling 19 in phase one, two in phase two, and two in phase three. And as I mentioned, there are three approved products derived from OmniAB technologies. We believe generating large, diverse antibody repertoires of high-quality antibodies increases the likelihood of success in discovering an antibody with optimal therapeutic characteristics. Many of our partners are using a number of our different engineered animals, and in some cases, more than one of our sources for a single program. On the chicken has been the fastest growing source issues as on the chicken antibodies bind to diverse epitopes on human targets with high affinity and also offer excellent profiles for development. On the flick and on the click are fixed and common light chain engineered rats and chickens designed for efficient discovery of by specific antibodies which are of growing interest to the pharmaceutical industry. And Omnitor provides access to antibodies with unique structural characteristics for challenging targets. I know too that OmniRAT, which is our largest source category here on this slide, has been available to our partners the longest and was launched first. Our partners tell us they place a high value on our ability to provide flexibility to meet their evolving scientific needs. And our technology stack can be leveraged to develop multiple therapeutic formats and modalities as shown on slide 9. By generating large and diverse repertoires of high-quality antibodies, we believe the biological intelligence of our technologies increases the probability of success of therapeutic antibody discovery and helps limit attrition of antibody product candidates. Our partners continue to advance programs through development and some made public announcements about their progress during the fourth quarter and into this year. Notably, we received $35 million in milestone payments from our partner Janssen related to Teqvali, which Kurt will talk more about in a moment. Moving to Baticlumab, Harbor Biomed recently announced positive top line results from its phase three clinical trial for the treatment of generalized myasthenia gravis. In addition, Immunovant announced initiation of a phase three trial of Bataclomab in thyroid eye disease and a pivotal phase two B trial in chronic inflammatory demyelinating polyneuropathy. Turning to Zimbarilumab, Gilead and Arcus Biosciences announced positive results from the fourth interim analysis of the ARC7 phase two clinical trial in patients with first line metastatic non-small cell lung cancer. And for Sugumelumab, EQRX announced that the UK and European regulatory agencies accepted its marketing authorization applications for first-line treatment of metastatic non-small cell lung cancer. In addition to that, Seastone announced other updates in China as well. Our technology stack is driven by the biological intelligence of our engineered transgenic animals paired with our high-throughput screening technologies to enable discovery of high-quality, fully human antibody therapeutic candidates for a wide range of diseases. As I mentioned, we believe we're the industry's only four species in vivo antibody discovery platform, making OmniAB the most diverse host repertoires that are available. Our experience and our collective dialogue with our partners gives us critical insight into the industry, and it creates a positive feedback loop to advance and innovate around our proprietary platforms. We also have a suite of in silico tools for therapeutic discovery and optimization that are woven throughout our various technologies and capabilities. These tools include structural modeling, large multi-species antibodies databases, artificial intelligence, and machine learning sequence models and more. These capabilities enhance our ability for rapid identification of candidates with the right affinity, specificity, and developability profiles. and leads to more effective and efficient drug development by our partners. In addition, we have extensive capabilities centered around ion channels and transporters that were established and built around small molecules and have clear potential in multiple formats and modalities. And we think we can create possibilities for completely new paradigms for approaching ion channel and transporter targets. We continue to invest and innovating around our technology, while evaluating strategic technology acquisitions and licensing opportunities to further broaden our capabilities. For example, in February, we entered into a license agreement with Mabsolve for its SD silencing platform technology. The agreement provides us with exclusive sub-licensable access to the STR technology, which will provide our partners with the ability to efficiently silence effector functions to help discover and develop safe and effective therapeutics. This is the latest example of creative expansion of our platform. We're also excited to roll out new innovations relating to our platform this year, and our launches of new technologies will generally coincide with major antibody engineering and antibody discovery conferences this year. As I mentioned, we believe we're well positioned for future growth, as we leverage our highly scalable business model and support our partners' pipelines as they expand and advance into the clinic. Through our business development efforts, we plan to add more license agreements and more partners to our portfolio. Further, we remain committed to investing in our proprietary technology platform to enhance our position as a leader in the marketplace and to continue to offer our partners versatility in workflows. As just one example, during the fourth quarter of this year, we plan to launch a heavy chain only transgenic chicken, which we see as an important new innovation that our partners will want to access. We look forward to keeping you updated on these developments through the year. And with that, I will turn the call back over to Kurt for a discussion of the financials. Kurt?